Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 130,000 208,000 Beginning Balance $ 125,000 331,000 578,000 876,000 397,000 253,000 $ 2,560,000 $ 385,000 951,000 1,224,000 $ 2,560,000 $ 5,211,000 4,533,570 677,430 338,000 $ 339,430 Ending Balance $ 131,000 483,000 485,000 851,000 430,000 251,000 $ 2,631,000 $ 340,000 951,000 1,340,000 $ 2,631,000 The company paid dividends of $223,430 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%. Required: 1. Compute the company's average operating assets for last year. 2. Compute the company's margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year?
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 130,000 208,000 Beginning Balance $ 125,000 331,000 578,000 876,000 397,000 253,000 $ 2,560,000 $ 385,000 951,000 1,224,000 $ 2,560,000 $ 5,211,000 4,533,570 677,430 338,000 $ 339,430 Ending Balance $ 131,000 483,000 485,000 851,000 430,000 251,000 $ 2,631,000 $ 340,000 951,000 1,340,000 $ 2,631,000 The company paid dividends of $223,430 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%. Required: 1. Compute the company's average operating assets for last year. 2. Compute the company's margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject : Accounting
1. Average operating assets
2. Margin %
2. Turnover
2.
3. Residual income
Transcribed Image Text:Financial data for Joel de Paris, Incorporated, for last year follow:
Joel de Paris, Incorporated
Balance Sheet
Assets
Cash
Accounts receivable
Inventory
Plant and equipment, net
Investment in Buisson, S.A.
Land (undeveloped)
Total assets
Liabilities and Stockholders' Equity
Accounts payable
Long-term debt
Stockholders' equity
Total liabilities and stockholders' equity
Joel de Paris, Incorporated
Income Statement
Sales
Operating expenses
Net operating income
Interest and taxes:
Interest expense
Tax expense
Net income
$ 130,000
208,000
Beginning
Balance
876,000
397,000
253,000
$ 2,560,000
$ 125,000
331,000
578,000
$ 5,211,000
4,533,570
677,430
338,000
$ 339,430
Ending Balance
$ 385,000
$ 340,000
951,000
1,224,000
951,000
1,340,000
$ 2,560,000 $ 2,631,000
$ 131,000
483,000
485,000
851,000
430,000
251,000
$ 2,631,000
The company paid dividends of $223,430 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment
in the stock of another company. The company's minimum required rate of return of 15%.
Required:
1. Compute the company's average operating assets for last year.
2. Compute the company's margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2
decimal places.)
3. What was the company's residual income last year?
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